The shares of this staffing company were recently upgraded to a “Buy” at Jefferies, and nine analysts have increased their earnings estimates in the past 30 days. Our second recommendation is a “Sell” on an energy company during this period of uncertainty.
Buy: Robert Half International (RHI)
from Dow Theory Forecasts
Robert Half International (RHI) joins the Long-Term Buy List. Leveraged to the improving North American labor market, Robert Half offers specialized staffing services in the accounting and finance fields. Foreign operations account for less than a quarter of its business. Revenue, up in 21 straight quarters, advanced 12% in the 12 months ended June. Cash from operations, up in 18 of the past 20 quarters, rose 17% over the past year.
The consensus expects per-share profits to grow 16% on 8% higher revenue in the September quarter —and estimates are rising. Despite its remarkably steady track record and improving outlook, the stock earns a reasonable Value score of 51. At 23 times trailing earnings, shares trade 23% below their five-year average.
Richard J. Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, August 24, 2015